Smith Electic (SE) owed Estimated Warranty Payable of $1,100 at the end of 2023. During 2024, SE made sales of $100,000 and expects product warranties to cost the company 5% of the sales. During 2024, SE paid $2,600 for warranties. What is SE's Estimated Warranty Payable at the end of 2024? OA. $2,600 OB. $5,000 OC. $6,100 O D. $3,500
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- Roy Electric (RE) owed Estimated Warranty Payable of $1,200 at the end of 2015. During 2016, RE made sales of $110,000 and expects product warranties to cost the company 2% of the sales. During 2016, RE paid $2,700 for warranties. What is RE's Estimated Warranty Payable at the end of 2016? O A. $700 OB. $2,200 O C. $2,700 OD. $3,400Wells Electric (WE) owed Estimated Warranty Payable of $1,200 at the end of 2017. During 2018, WE made sales of $120,000 and expects product warranties to cost the company 3% of the sales. During 2018, WE paid $2,300 for warranties. What is WE’s Estimated Warranty Payable at the end of 2018? a. $2,300 b. $2,500 c. $3,600 d. $4,800PART A BB Inc's sales during 2021 totaled $375,000, and the company estimates that warranty costs will be 4.4% of sales. The adjusted balance in Estimated Warranty Payable on December 31, 2020 was $21,000 Cr. BB Inc offers replacement products under its warranty plan. During 2021, warranty replacement costs were $12,900. A. Prepare the journal entry to record the 2021 warranty expense, and also the journal entry to record replacement costs under warranty. Use December 31.s the date for both. B. Determine the final balance in the warranty liability account on December 31, 2021. C. Do you recommend that BB Inc retain the 4.4% estimate? Why or why not. Answer in one brief bullet point or sentence. PART B BB Inc operates in Nova Scotia where HST is 15%. During the first quarter (January 1 to March 31) of 2022, 8B Inc purchased $13,000 inventory plus HST. During the first quarter, BB Inc recorded $17,000 sales revenue and charged customers HST. Prepare the journal entry to show BB Inc's…
- Relay Company estimated that annual warranty expense at 2% of annual net sales. The net sales for 2021 amounted to P4,000,000. On January 1, 2021, the warranty liability was P60,000 and the warranty payments during 2021 totaled P50,000. What is the warranty liability on December 31, 2021? O P10,000 O P90,000 O P70,000 O P80,000Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data relate to calendar year 2020:• Net sales- P3,200,000• Warranty liability (debit balance before adjustment) - P10,000• Warranty liability (credit balance after adjustment)- P54,000. Which of the following entries was made to record the 2020 estimated warranty expense? A. DR: Warranty Expense- P54,000 and Retained Earnings- P10,000; CR: Estimated Warranty Liabilities- P64,000 B. DR: Warranty Expense- P64,000; CR: Retained Earnings- P10,000 and Estimated Warranty Liabilities- P54,000 C. DR: Warranty Expense- P44,000; CR: Estimated Warranty Liabilities- P44,000 D. DR: Warranty Expense 64,000; CR: Estimated Warranty Liabilities- P64,000A new product introduced by Reyes Promotions carries a two-year warranty against defects. The estimated warranty costs related to peso sales are as follows: Year of sale.. .3% Year after sale..... .5% Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021 are as follows: Sales 800,000 1,000,000 Expenditures 12,000 70,000 2020 2021 11. How much is the warranty expense in 2021? 12. How much is the estimated liability as of December 31, 2021? Assume the 2020 warranty did not yet expire.
- On September 30, 2022 World Company borrowed P1, 000, 000 on a 9% note payable. The entity paid the first of four quarterly payments of P264, 200 when due on December 31, 2022. 1. What amount should be reported as interest expense for 2022? A. 90, 000 В. 22,500 C. 67,500 D. 30,000 2. On December 31, 2022, what is the carrying amount of the note payable? A. 758, 300 В. 750, 000 С. 825, 800 D. 735, 800Wall Company sold a product under a two year warranty. The estimated cost of warranty repairs is 2% of net sales. During the 1st two years in business, the entity made the following sales and incurred the following warranty repair costs: 2020 2019 2,500,000 3,000,000 Net Sales Total Repair Costs Incurred 45,000 50,000 What amount should be reported as warranty expense for 2020? O 60,000 50,000 10,000 59,0001. Otis Company sells calculators that carry a one-year warranty against manufacturer's defects. Based on company experience, warranty costs are estimated at P300 per calculator. During 2017, Otis sold 24,000 calculators, and paid warranty costs of P170,000. In its income statement for the year ended December 31, 2017, how much should Otis report as warranty expense? a. 1,700,000 b. 2,400,000 c. 5,500,000 d. 7,200,000 2. In May 2017, Maive Company filed suit against Wiley, Inc. seeking P850,000 damages for patent infringement. A court verdict in November 2017 awarded Maive P600,000 in damages, but Wiley's appeal is not expected to be decided before 2017. Maive's counsel believes it is probable but not virtually certain that Maive will be successful against Wiley for an estimated amount in the range between P300,000 and P450, 000, with P400,000 considered the most likely amount. What amount should Maive record as contingent asset from lawsuit in the year ended December 31, 2017? a. None…
- On May 1, 2021, Nees Manufacturing lends $10,000 to Roberson Supply using a 9% note due in 12 months. Nees has a December 31 year-end. Calculate the amount of interest revenue Nees will report in its 2021 and 2022 income statements. a. 2021 = $300; 2022 = $600.b. 2021 = $600; 2022 = $300.c. 2021 = $900; 2022 = $0.d. 2021 = $0; 2022 = $900.During 2018, Stable Company introduced a new line of product that carry a three-year warranty against manufacturer’s defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 3% in the year after sale, and 4% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: Sales Actual Warranty Expenditures 2018 P 400,000 P 6,000 2019 1,000,000 40,000 2020 1,400,000 90,000 P2,800,000 P136,000 What amount should Stable report as estimated warranty liability at December 31, 2020? What amount of warranty expense should be reported for 2019?6 Miele Appliances owed estimated warranty payable of $1000 at the end of 2016. During 2017, Miele made sales of $100000 and expects product warranties to cost 4% of the sales. During 2017, Miele paid $2800 for warranties. What is Miele's estimated warranty payable at the end of 2017? a $3 500 b $2 500 c $2 200 d $1 500